GBP/USD 1.6344 – 15 January 2010

GBP/USD Open 1.6332 High 1.6355 Low 1.6252 Close 1.6333
Pound/Dollar retreated on Thursday after the news from China showed a housing loans conditions tightening, than recovered from the 1.6252 bottom to 1.6343, closing the day ay 1.6333. Holding above the key 1.6550 support confirms the technical double bottom formation, which indicates possible further increase of the Cable with targets towards the resistance level 1.6438. Convincing break below the 1.6252 support will favour Dollar’s strength and may weaken the Sterling down to 1.6141. On the 3 hour chart the currency couple is trading within the 1.5855 – 1.6396 range. Break out of the range would give clearer movement direction signals. MACD indicator is rising, supported by the Stochastic too. The CCI indicator is leaning downwards on the 1 hour chart, suggesting bearish pressure.
Technical resistance levels: 1.6355 1.6438 1.6550
Technical support levels: 1.6252 1.6141 1.6065

Trading range: 1.6355 – 1.6280
Trend: Downward
Sell at 1.6344 SL 1.6374 TP 1.6294

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